In a strategic move to bolster its content offerings, streaming behemoth Netflix has updated its initial offer for the acquisition of Warner Bros. Discovery’s streaming and film businesses. The updated proposal, which is now an all-cash offer, aims to provide more certainty to shareholders and expedite the approval process.
The deal, valued at around $82 billion (£61 billion), including debt, would give Netflix ownership of Warner Bros.’ extensive library of popular franchises such as Harry Potter and Game of Thrones, as well as the streaming service HBO Max. The streaming giant has offered to pay $27.75 per share for the combined streaming and film assets, a price that remains unchanged from its original bid.
The announcement comes as Paramount Skydance, backed by tech billionaire Larry Ellison and his family, continues to pursue a rival bid for Warner Bros. Paramount has argued that the news and television assets, including CNN, which are set to be spun off as a separate publicly traded company, are worth significantly less than what Warner Bros. is hoping for.
In a joint statement, Netflix and Warner Bros. said the all-cash offer would provide “greater certainty” to shareholders and enable them to vote on the deal more quickly. Samuel Di Piazza, Jr., the chair of the Warner Bros. Discovery board of directors, stated that the amended agreement with Netflix is a testament to the board’s unwavering focus on representing and advancing the interests of their shareholders.
The move to an all-cash offer comes as Netflix’s own shares have fallen more than 10% since the deal was first announced last month, reflecting investor unease about the plan. Despite this, Netflix reported a strong performance in the last three months of 2025, with revenue jumping 18% year-on-year to over $12 billion (£9 billion), including more than $1.5 billion (£1.1 billion) from advertising.
The company now boasts more than 325 million paying subscribers globally, up over 7% from a year ago. In a letter to shareholders, Netflix defended the Warner Bros. acquisition, stating that the two businesses have “highly complementary” operations and that the purchase would enrich their selection of films and television, as well as allow them to offer more personalized streaming services.
The proposed merger has faced criticism, with some arguing that it would consolidate too much power in the hands of a single company. However, Netflix has emphasized its plans to invest in production in the United States, stating that “Together we’ll be able to offer more opportunities to creators and strengthen the entire entertainment industry.”
As the battle for the future of the media landscape continues, the outcome of this high-stakes acquisition will have significant implications for the industry and consumers alike.
